July 23, 2024 at 06:28AM
Meta has been given until September 1, 2024, to address concerns from the European Commission regarding its “pay or consent” advertising model. The Commission warned of enforcement measures if not addressed, stating that this model may violate consumer protection laws. Similar actions have been taken against other tech companies like Google and Oracle globally.
From the meeting notes, the key takeaways are:
– Meta has until September 1, 2024, to address concerns raised by the European Commission over its “pay or consent” advertising model or face enforcement measures and sanctions.
– The European Commission has notified Meta of potential violations of consumer protection laws related to its advertising model on Facebook and Instagram.
– The Commission has expressed concerns that consumers might feel pressured to choose quickly between paying a monthly subscription or consenting to their personal data being used for targeted advertising, potentially motivated by fears of losing access to their accounts.
– Meta’s subscription plan for E.U. users and its “privacy fee” for data protection rights have raised regulatory scrutiny.
– The E.U. Digital Markets Act requires gatekeeper companies to obtain users’ express consent before utilizing their data for offering services beyond core functionality.
– The Commission has criticized Meta for the use of vague terms and making the user experience confusing regarding data usage for advertising purposes.
– Meta considers the paid version as a legitimate business model and has pointed to a ruling from the Court of Justice of the European Union, but questions remain about its applicability to existing users.
– The development comes after Nigeria’s FCCPC fined Meta for data sharing violations, and the Turkish competition board imposed a penalty for data-sharing practices.
– Oracle settled a class-action lawsuit over privacy breaches, and Google is facing a new probe by the Italian data protection authority over obtaining user consent for combining personal data from different services.
These are the main points to be aware of from the meeting notes.